Bitcoin ETF Outflows Stabilize, Upping BTC Accumulation: Are We Bracing for a Breakout?

Key Points

• Bitcoin’s (BTC) price has seen a significant decrease, with spot traders slowly beginning to accumulate the asset.
• Despite the decrease, liquidity inflows into Coinbase suggest ongoing accumulation and potential anticipation of a rally.

Bitcoin’s Falling Prices and Accumulation

Bitcoin, the largest cryptocurrency globally, is experiencing a decline in its trading levels, currently valued at just over $81,000. This represents a nearly 2% decrease over the past 24 hours.

With Bitcoin trading close to its critical support levels, spot traders have begun to slowly accumulate the asset. Other factors are being analyzed to determine whether Bitcoin will experience a price pump in the coming days.

Spot ETF Outflows Slow Down

Recent data has shown a significant decrease in Bitcoin outflows from exchange-traded funds (ETFs) over the past month. After peaking with outflows of $1.01 billion on 25 February, with total Bitcoin sales of $2.039 billion between 25-27 February, investor selling pressure has cooled down.

In the past 24 hours, $135.20 million was withdrawn from the market, with assets under management at $97.62 billion. Despite the slowdown in Bitcoin Spot ETFs selling, there have been significant liquidity inflows into Coinbase .

In the past week, inflows have totaled 719 million USDC. This large inflow, combined with stagnant prices, suggests ongoing accumulation and potential anticipation of a rally. Bitcoin’s exchange netflows on Coinglass confirm this buying activity, with spot traders purchasing approximately $57 million worth of Bitcoin in the past two days.

Negative netflows indicate that traders are buying an asset, and institutional investors seem to share this sentiment. The funds market premium, which measures institutional demand and supply for Bitcoin, has turned positive with a reading of 1.03.

Weekly Support as a Key Factor

Even as Bitcoin regains strength in the market, market sentiment could shift. The next significant support level is at $74,000, a level that has held firm since January 2023 and has been a foundation for market rallies.

If the price reacts positively and trends higher from this level, it could signal a major Bitcoin rally. However, a breach of this support could indicate high bearish sentiment, leading to further price declines. Currently, the market is well-positioned for an upswing, provided bullish sentiment continues to dominate.